Assembly Bill A5203

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5203
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 12, 2025
                                ___________
 
 Introduced by M. of A. K. BROWN -- read once and referred to the Commit-
   tee on Education
 
 AN  ACT  to  amend  the  education  law, in relation to reimbursement of
   school districts for expenditures resulting from certain civil  action
   settlements or jury awards
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraphs (iii) and (iv) of paragraph i of  subdivision
 2  of section 2023-a of the education law, as added by section 2 of part
 A of chapter 97 of the laws of 2011, are amended to read as follows:
   (iii) in years in which the normal contribution rate of the  New  York
 state teachers' retirement system, as defined by paragraph a of subdivi-
 sion two of section five hundred seventeen of this chapter, increases by
 more  than  two  percentage  points  from  the previous year, a tax levy
 necessary for  expenditures  for  the  coming  fiscal  year  for  school
 district  employer contributions to the New York state teachers' retire-
 ment system caused by growth in the normal contribution rate  minus  two
 percentage points; [and]
   (iv) a capital tax levy; AND
   (V)  A TAX LEVY NECESSARY FOR EXPENDITURES RESULTING FROM CIVIL ACTION
 SETTLEMENTS OR JURY AWARDS MADE PURSUANT TO SECTION  TWO  HUNDRED  FOUR-
 TEEN-G  OF  THE CIVIL PRACTICE LAW AND RULES FOR ANY AMOUNT THAT EXCEEDS
 FIVE PERCENT OF THE TOTAL TAX LEVIED IN THE PRIOR SCHOOL YEAR.
   § 2. The education law is amended by adding a new section 3615 to read
 as follows:
   § 3615. REIMBURSEMENT TO SCHOOL DISTRICTS FOR CIVIL ACTION SETTLEMENTS
 OR JURY AWARDS.  1. NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRA-
 RY, SUBJECT TO AVAILABLE APPROPRIATION, THE COMMISSIONER SHALL REIMBURSE
 SCHOOL  DISTRICTS  FOR EXPENDITURES MADE TO PAY FOR CIVIL SETTLEMENTS OR
 JURY AWARDS RELATED TO SECTION TWO HUNDRED FOURTEEN-G OF THE CIVIL PRAC-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08059-01-5
 A. 5203                             2
              

 
 TICE LAW AND RULES. SUCH PAYMENTS TO SCHOOL DISTRICTS SHALL ONLY BE MADE
 WHEN:
   A.  IT  CAN  BE  DEMONSTRATED THAT NO INSURANCE POLICY FOR THE COVERED
 PERIOD CAN BE LOCATED, OR SUCH SETTLEMENT  OR  JURY  AWARD  EXCEEDS  THE
 POLICY LIMIT OF THE ESTABLISHED INSURANCE POLICY;
   B.  THERE  WAS A MONETARY JUDGMENT ISSUED OR SETTLEMENT AGREEMENT WITH
 REGARD TO SUCH SETTLEMENT OR JURY AWARD; AND
   C. IT CAN BE DEMONSTRATED THAT THE SETTLEMENT OR JURY AWARD WOULD  PUT
 A SUBSTANTIAL FINANCIAL BURDEN ON THE SCHOOL DISTRICT.
   2.  EACH SCHOOL DISTRICT SHALL REPORT TO THE COMMISSIONER ANNUALLY, BY
 A DATE TO BE ESTABLISHED BY THE COMMISSIONER, THE AMOUNT OF EXPENDITURES
 MADE BY THE DISTRICT THAT ARE DIRECTLY RELATED TO  SETTLEMENTS  OR  JURY
 AWARDS  MADE  PURSUANT  TO  SECTION  TWO HUNDRED FOURTEEN-G OF THE CIVIL
 PRACTICE LAW AND RULES.
   3. THE COMMISSIONER SHALL REPORT TO THE GOVERNOR AND THE  LEGISLATURE,
 BY  AUGUST  FIRST OF EACH YEAR, ON THE ADMINISTRATION AND FUNDING OF THE
 REIMBURSEMENT PROGRAM.
   § 3. This act shall take effect immediately.